Catching the right train

Discussion in 'Trading' started by lojze, Jul 18, 2002.

  1. lojze


    I am somehow trying to get the quickiest moving train. However I have constant difficulties. Right now PCS ended with its rally and NXTL started to move on.

    However I constantly miss the trains, at least the right ones.

    Is this something with looking at the right indicators or is pure luck or something like psychology issue?

  2. You need to be on the train before it starts moving. The moves are so fast and short that it is difficult to grab on without being defensive.
  3. trying to make money catching trains is risky business in this market.when the music stops make sure you have a chair.
  4. Trying to pick stocks, day in and day out, based on indicators and news, and all of that is pretty risky....and even if you find a good stock, then you have to trade against all the people who trade that stock every day....a "no win" situation.

    Find a few stocks that you like, trade them every day....become a "surrogate specialist" in them....they all move, and you'll be able to read the tape and the stock like an expert.

  5. Don't chase stocks. Catching the right stock at exactly the right time has alot of luck involved. Like Don says, it's better to focus on a few stocks that have good moves and learn to trade them. Don't spread yourself too thin trying to find all the stocks with good moves.
  6. keep your eyes on the train tracks.

    See chart...
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  7. trdrmac


    However I constantly miss the trains, at least the right ones.

    Is this something with looking at the right indicators or is pure luck or something like psychology issue?

    Lojze [/B][/QUOTE]

    Lojze, It is my opinion that this is something that we all, and if not all, something that I certainly struggle with. And even if you are on the right train, you can get off too early or too late which is at a minimum an opportunity cost and at most a real cost.

    One thing that has worked better for me than finding the perfect set up is finding several "close" set ups. For instance, last week I was short several stocks. WYE gapped down huge which made my week. Several I took off at losses and several at small gains that I could have let run.

    Other thoughts and problems that I am working on.

    Confusing time frames. My resolution is to start writing out entry, stop loss and target goals. The reason for the trade as well. And this is to keep me from pulling trades too early which has cost me money both ways. The other thing is being right but being too early. And since it is nothing for a good short to run 10% in a day, I would have improved greatly by being just a little more patient to wait for a run up before selling.

    The big part of this problem is my feel that I am going to miss something by not being at the terminal. I am becoming increasingly convinced that we will get a short term tradeable rally. As such I have started to position myself longer over the past month or so. So when my shorts go the wrong way, I look to cover as not to get squeezed too hard. The fact that this is a "longer term" trade often causes a difficult paradox between what I have to do daily and what I see longer term.

    The second thing that was/is a problem for me is trying to watch TOO MUCH on a daily basis. And this may seem contrary to my basket approach, but it is not. For instance, if I want to get short, I will pick 10 set-ups I like and TAKE them. In the past I would have thrown them in a watch list and WAITED and WATCHED and MISSED. Now I keep watch list of open positions and several things I want to keep track of like indicators and industry groups. Other than that I do daily scans, if I like I go with it, if not, then tomorrow is a new day. Overall, this has worked pretty well.

    There are no perfect answers, at least not from me.

  8. If you are trying to use mathematical indicators like stochastic, MACD, etc. they all work better in longer time frames and do not lend themselves to pure daytrading or scalping. That is where Don Bright is right on the money and giving good advice to people.
  9. Noodles

    Noodles Guest

    They should charge you for this sh*t... You make sound as if your way is the only way to make money on the street... Nonstop I hear this bulsh*t from you!!!!! "You have to read tape forget about the charts and news" I'll bet you your avg tape reader gives you 30+ Rt's a day too right?

    YOU MAKE ME SICK DON!!!!!!!!!!!!!! Go eat another 65 hogies or something and stop spamming these boards! If you could actually trade Don you wouldn't spend soooooo much time here recruiting these naive sheep!!!!
  10. Now that's irrational exuberance.
    #10     Jul 18, 2002